Morning journal and courier., 1887-05-31
A ssoo.ooo OFFER

To The City For the Little Derby From the Consolidated Road-Also . PrOposftiOn For a Nfnety.NIne Years Lease of the Derby From the Con- soHdated-Th Latter Proposes to Pay Dividends on all the Derby's Stock If a Lease is Effected. The board of common council met last ness which had come from the aldermen took up the 'Starbuck" offer for the city's inter est in the Derby road
 l Councilman Kent offered the following:
 The Starbuck offer is flor two thousand shares ot company amounting to S2os GOO in past due coupons e@n @ f1Est @ mortgage bonds, and in part note for
 Does the offer include all the debt due the city by leased from it's guarantee of the principal and in terest of the $aOO0Go worth of second mortgage bonds?
 Councilman Kent's communication and the I Starbuck offer for the road were then re- ferred to the finance committee. The unfavorable report of the finance committee on the offers of the Housatonic Valley railroad and of President Joel A. Sperry caused considerable discussion. An effort was made to have the Sperry offer re- ferred back to the finance committee, but 1t
 
 concurrence with the aldermen.
 Mayor York handed the following to Clerk Shanley, which was read:
 May 30, 1887. To the Court of Common Council of the city of
 1 enclose communication received by me this New New Haven Have n and Hartford railroad, Mr. Charles P. Clark. As the matter is of great importance to the deserves s S and if permitted would @ % suggest that it take the same reference which ether matters affect ing the eitys interest in the Derby rairead have
 Sgned) SAMUEL A. YORK, Mayor.
 The communication was then read by the clerk and was referred to the board of f- nance, after which the Council adjourned. The Consolidated roads offer is as follows:
 PRESIDENTS OFFICE,
 N. Y., N. H. & H. R. R. Co.,,
 NEW HAVEN, May 30, 1887. To the Mayor and Court of Common Council
 of the city of New Haven:
 Gentlemen-The relation of the New Ha- ven 6 Derby railroad to the property of this company becomes for the first time practi- cal one, by reason of our lease of the Nauga- tuck railroad for ninety-nine years. It will be both our interest and our duty to afford the best facilities for the communities served by the Naugatuck road to reach not only New Haven but the Union station in l New Haven, from which journey can l be continued over either of the divisions of I our system radiating therefrom. While our | lease of the Naugatuck road recognizes the I contract existing between it and the Derby | the scope of that contract does not provide l for such free development of the Derby as will be desirable in view of the changed con | ditions. We cannot guarantee proper facili- | ties between the Naugatuck valley and New Haven unless we have in some way control of the Derby road or build line parallel to As so large proportion of the stock of he New Haven and Derby road is owned by he city of New Haven, which is at the same ime it's largest creditor, the practical way of reating the question seems to be to ask the ! representatives of the city of New Haven to I cooperate by funding its debt of the Derby ompany at 8 reasonable rate of interest and D a subsequent lease of the Derby railroad to his company for the same term as our lease of he Naugatuck. We are prepared to negoti- te such lease upon the basis of payment of interest upon the entire Derby debt and reg lar dividends to every stoekholder in that pad. In this way the city will be repaid all s advances to that road and it's investmenti ] it will become at once productive, while l ae arrangement itself will be untainted with 1 peculation and equitable to all concerned. If, however, the city of New Haven pre> ,rs to sell it's interests in the Derby railroad, lis company will give three hundred thou md dollars for it, and then try to carry out le arrangement outlined above. This com any would then connect the tracks of the 70 roads at point beyond West river and 'ase the occupation of the streets of New aven by the Derby railroad, eliminating le grade crossings already dangerous and convenient to both citizens and visitors. Experience having demonstrated the abil- 7 of single large corporation to render Utter service. to give lower rates of fare and eight, to insure better connections in all rections than is possible when the interests small individual carriers are to be consid- ed, with the attendant waste and expense administration and operation, there can be , doubt that the public interest will be pro- oted by such an arrangement as we pro- ,se.
 To this end we ask suitable reference of is offer and the appointment of commit 8 of conference. Very respectfully
 CHARLES P. CLARK, President.